As legislatures return to action and governors outline their budget plans, politicians in many states are facing a pleasant election-year challenge: What to do with all the extra money?
A slow but steady economic recovery is generating more tax revenue than many states had anticipated, offering elected officials tantalizing choices about whether to ply voters with tax breaks, boost spending for favorite programs or sock away cash for another rainy day.
It's a tricky question because of the economic experiments begun almost nationwide since the recession. A couple of dozen states controlled by Republicans have been seeking prosperity with tax cuts and less government. Their Democratic counterparts have sought to fortify their economies by investing more in education and other social services
(Read more: This state is in the worst fiscal condition: Study)
The clamor for new spending is already revealing fissures among some governors and lawmakers. And clashes have arisen even within the same party, suggesting that the debate in some places could widen beyond typical partisan disputes.
